E.—No. 1

No. 37. Copy of a Letter from the Right Hon. Edwaed Cabdwell, M.P., to Governor Sib G. Geet. (No. 70.) Sic, — Downing Street, 25th June, 1866. I have the honor to transmit for your information, a copy of a letter from the PostmasterGeneral respecting two questions which had arisen in connection with the transit of the Mails from Panama to New Zealand; and I have to request that you will inform me whether your Government concur in the course adopted by Lord Stanley of Alderley. Copies of a previous correspondence between Mr. John Morrison, this department, and the Post Office, respecting the despatch of the mails from this country by way of Panama, and the rates of Postage to be levied on Letters, Newspapers, Book Packets, and Packets of Patterns, so transmitted are likewise enclosed for your information. I have, Ac, Governor Sir George Grey, X.C.8., Ac. Edwaed Cabdwell. Enclosure in No. 37. Copy of a Letter from Mr. Hill to Sir F. Rogees. Sic,— General Post Office, 11th June, 1866. With reference to my letters of the 16th and 21st ultimo, I am directed by the PostmasterGeneral to request that you will state to Mr. Secretary Cardwell that, on proceeding to make up the first mail for New Zealand via Panama, questions arose on two points which required immediate settlement. In the first place, it was necessary to determine what rate should be accounted for by the French Post Office for the conveyance from Panama to Wellington of letters and printed papers originating in France, and in countries the correspondence of which is forwarded through France, and addressed to JSew Zealand or Australia. On every description of correspondence despatched from France through the United Kingdom to British Colonies or foreign countries, the payment made by the French to the British Post Office for the transit of those mails is calculated, not on each separate letter, and on each separate packet of printed papers, but at a sum per 30 grammes for letters, and per kilogramme for printed papers according to to the net weight in bulk of each class of correspondence. It would have complicated the accounts, therefore, to have adopted any other mode of calculating the payment to be made by France for this new service between Panama and New Zealand, and the Postmaster-General took upon himself, under the circumstances, to propose to the Director-General of the French Post Office that this payment should be fixed at 1 franc 20 c per grammes for letters, and 1 franc per kilogramme for printed papers. The proposal has been accepted. The French Post Office will account to this office at the rates specified on all the correspondence which it sends to London for transmission to New Zealand via Panama; and this office will account at a like rate to the Post Office, Wellington. The other question was, whether the privilege enjoyed by Naval Officers and seamen in the Royal Navy of sending and receiving their letters by British Mail Packets at reduced rates of postage, would apply to letters forwarded to New Zealand by the Colonial Mail Packets from Panama; and the Postmaster-General, believing that such would be the wish of the Government of New Zealand, gava directions that the letters in question should be sent via Panama without any additional charge. I am to request that Mr. Secretary Cardwell will be good enough to communicate these circumstances to the officer administering tho Government of New- Zealand, and to ascertain whether the course adopted meet 3 with his approval. I am, Ac, Sir Frederick Rogers, Bart., Ac, Colonial Office. F. Hill. No. 38. Copy of a Letter from Mr. S. H. Lambton to the Seceetaey, General Post Office, Wellington. Sib— General Post Office,, Sydney, 4th August, 1866. I am directed to acknowledge receipt of the Honorable the Postmaster-General of New Zealand's letter, dated the 21st ultimo, in reply to a letter from this department dated the 15th June. lam to express regret that the third paragraph of that letter was not understood; and now to explain its real meaning, which is as follows : That an account of postages on correspondence posted in Sydney, addressed to New Zealand, and forwarded by the Panama contract steamers, will be kept; but the usual credit for two-thirds of those receipts will not be given on tho letter Mils until it is ascertained whether, in lieu of this, the Colony will be credited with a certain portion of the Imperial Government's contribution to the Intercolonial Mail Service between Australia and New Zealand. I have, Ac, The Secretary, General Post Office, S. H. Lambton, Wellington, New Zealand. Acting Secretary. No. 39. Copy of a Letter from the Hon. Postmastee-Genebal, Wellington, to the Secbetabt, General Post Office, London. Sic,— General Post Office, Wellington, Bth September, 1866. I have the honor to acknowledge receipt of your letter of 31st May last, acquainting me with

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THE PANAMA MAIL SERVICE.